If we already live in conditions of a fixed exchange rate, then we must not allow our salaries to grow faster than productivity, so as not to jeopardize the competitiveness of the domestic economy, said today for N1 professor of the Faculty of Economics in Belgrade and former governor of the National Bank of Serbia, Dejan Soskic.
“We must not raise wages on average faster than productivity growth,” said Soskic, arguing that, otherwise, domestic labor would be more expensive, which could classify Serbia as a country that is more profitable to import than export from. He also assessed that Serbia has no “special reason for satisfaction” due to a somewhat lower economic decline compared to other countries, because it is a consequence of a different structure of the domestic economy.
“Countries that are less developed, that have an economic structure turned to agriculture and do not depend on tourism, will not feel any drastic decline in economic activity, and Serbia also falls into that category,” Soskic explained.
According to his assessment, such countries should not expect a high rate of economic growth next year, precisely because there has been no decline this year, BiF reports.
